Stating that they were confident of achieving further growth in the garment sector, textile industry Associations in Coimbatore hailed the revision of duty drawback rates and values caps by the Centre recently. Prabhu Damodaran, Secretary, Indian Texpreneurs Federation (ITF), welcomed the move and said that the industry was confident of achieving further growth in the garment sector with the timely support. He added that the importance to man-made fibre-based (MMF) yarn and fabrics would be a morale booster to the industry to focus more on MMF based value-added products, and this would in turn raise competitiveness in the global apparel market.
P Nataraj, Deputy Chairman, Southern India Mills' Association (SIMA) thanked the government for this move and particularly Nirmala Sitharaman, Minister of State for Commerce and Industry, and Saumitra Chaudhri, Chairman of Duty Drawback Committee, for enhancing drawback rates and value caps for various value-added products such as yarn counts in 100s and above, fabrics with less than 200 grams per square metre, knitted and woven garments.
He said the textile industry would be encouraged to focus more on value addition, which would generate more forex, due to the attractive rates given for certain value-added products. Nataraj feels the revised rate, which also encourages the industry to follow the Cenvat route to prepare for forthcoming GST, would get enhanced rate and value when exports opt for Cenvat facility.